UAE, Oman and Saudi Arabia

Spa Benchmark
Report
Full Year 2020
June 2021

Accelerating Success.
Spa Benchmark Report

FY 2020 Overview
2020 & 2019 Key Metrics and Annual Change

Introduction 2020 vs
Previous Year
2019 vs
Previous Year
This report focuses on analyzing fourteen spa
performance metrics, based on data received
UAE
directly from a panel of hotel spa operators Average Treatment USD USD
across the Gulf region, namely; the UAE, Oman Rate 98 -20% 122 +38%
and Saudi Arabia.
Across the three countries, a 20% drop in
average treatment rates were seen in 2020 Average No. of
when compared to the previous year. Treatments Sold 21 30
per Day (Per Spa) -30% -12%
Furthermore, treatment room utilization rates
have witnessed a 12% drop during the same
year. Treatment
USD USD
The decrease in spa performance levels was Revenue per
141 254
Therapist
due to COVID-19 and its influences on -44% -3%
international and domestic travel, which
Treatment
subsequently decreased demand in hotel spas
Revenue per
in the UAE, Oman and KSA. USD USD
Square Meter
(Treatment Room 6 -62%
16 +54%
Area)
Impact of COVID-19 on the Spa
Industry Treatment Room
12% 17%
As mentioned, COVID-19 has had a negative Utilization
-31% +14%
influence on spa performance levels in 2020.
Temporary mandated closures of spa and
In-House Guests
other recreational facilities during the 2nd Ratio
quarter of the year devasted the sector. (vs. Walk-In 56% 59%
Guests) -6% +37%
On average, hotel spas across the Gulf region
were opened only for 210 days in 2020.
Notes:
Furthermore, safety concerns during the peak Above data is represented in USD and shows percentage change from the previous
of the COVID-19 cases has slowed down year. The data above also shows actual figures shared by the participants of the
domestic demand for self-care treatments benchmark survey.
across Gulf. This is one of the key contributing
factors that influenced spa performance levels
in 2020. Over 85% of the
previous spa
participants of the study
Driving recovery have re-opened their
Most hotel spas in the region are heavily spas to the public. Still, a
reliant on international tourist demand, sizeable number of spas
therefore one of the main drivers for recovery remain closed across the
subject markets.
will be the increase in inbound travel across
the UAE, Oman and Saudi Arabia. As the
region gradually recovers from COVID-19 and
short-haul and long-haul travel levels return to
normalcy, Colliers expects that the hotel spa
performance levels will also improve in
tandem.

Source: Colliers, 2021

Spa Benchmark Report | FY 2020| MENA/Hotels 2

 Spa Benchmark Report

Selected Gulf Spa Markets

Average Treatment Rate vs

Average Treatments Sold Retail Revenue Contribution
per Day

9%
34 35
30
400 30 9%
Treatment Sold

21 25
300 8%
20
(USD)

200 15 8%
89 10
100 7%
122 98 5
9% 7% 7%
0 0 7%
FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020

Treatment Revenue
Female Spa Guest
Generated per Therapist
Ratio
vs Treatment Utilization

300 35% 40% 50%

Treatments Utilization

250 49%
26% 30% 48%
200 22% 48%
46%
(USD)

150 20%
44%
100
10% 42% 43%
50
261 254 141 40%
0 0%
FY 2018 FY 2019 FY 2020
FY 2018 FY 2019 FY 2020

Source: Colliers, 2021

3 Spa Benchmark Report | FY 2020| MENA/Hotels

Spa Benchmark Report
Post COVID-19

Post COVID-19
As the world continues to recover from the effects
of COVID-19, Colliers has identified key trends that
are expected to increase in popularity in the next
couple of years.
The following section highlights two key trends in
the hotel spa sector:
• Increased emphasis on Outdoor Facilities
• Growth in use of Wellness Technologies

Outdoor Massage Facilities

Offering outdoor facilities is a key trend that is set
to increase in popularity amidst the pandemic.
Similar to the recent increase in demand for
outdoor seating for food and beverage
establishments, Colliers expects that offering Outdoor Massage Facilities
outdoor wellness facilities and experiences during
the cooler months in the Gulf can be a key trend to
follow in the coming years.

Tech Wellness
Digital technology is shaping the way we look at wellness
as the need to live a better and healthier life intensifies.
Following the pandemic, public sentiment has shifted
on to maintaining wellness, both physically and
mentally.
To substitute treatments offered at spas, there is
an opportunity to adopt wellness technology to
provide alternative services to patrons. With
numerous health app features on digital watches, the
spa industry can enter this space and address the
needs of a growing wellness centric population.
Application of VR technology to guide experiences at
spas have become more accessible over the past 2
years. Natura Bisse’s Mindful Touch Facial and the
virtual reality pedicures at Kohler Waters Spa are some
examples of application of VR technology. When it
comes to wearables, companies like Nadi X have
developed yoga apparel that apply vibrational feedback
to guide the user through practice. There are also smart
jewelry that can monitor stress levels, guide through
meditation sessions and even track sleep.
The spa and wellness industry is in a unique position
Tech Wellness where they can use the data from these technologies to
curate individual and personalized experiences.

Source: Colliers, 2021

Spa Benchmark Report | FY 2020| MENA/Hotels 4

 480
FOR MORE INFORMATION

Christopher Lund

offices in Director - Head of Hotels | MENA Region

+971 55 899 6110
christopher.lund@colliers.com

67
James Wrenn
Associate Director, Hotels | MENA Region
+971 55 736 6767
james.wrenn@colliers.com
countries on Dyno Duque
Senior Analyst | Hotels MENA Region

6
+971 55 720 0707
dyno.duque@colliers.com

Mercy Kiprotich

continents Analyst | Hotels MENA Region

+971 52 645 2006
Mercy.Kiprotich@colliers.com

$3.3B
in revenue

2B
square feet under management

18,000 +
professionals

About Colliers
Colliers is a global leader in commercial real estate services, with over 18,000
professionals operating in 67 countries. Colliers delivers a full range of services
to real estate users, owners and investors worldwide, including global
corporate solutions, brokerage, property and asset management, hotel
investment sales and consulting, valuation, consulting and appraisal services
and insightful research. In MENA, Colliers has provided leading advisory
services through its regional offices since 1996.

Disclaimer
The information contained in this report has been obtained from sources
deemed reliable. Any information on projects, financial or otherwise, are
intended only to illustrate particular points of argument and do not constitute
forecast of actual performance. While every reasonable effort has been made
to ensure the accuracy of the information, we provide no warranty or
guarantee as to the accuracy or completeness of the information in this report
and Colliers assumes no liability whatsoever in relation to the forecast, figures
or conclusions contained herein. Any statements or opinions must not be Colliers
treated as investment or valuation advice and must not be relied on for United Arab Emirates
investment or any other purposes. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this Colliers.com
report.